The Union government is preparing to replace the Mahatma Gandhi National Rural Employment Guarantee Act(MGNREGA) with a new law called the Viksit Bharat Guarantee for Rozgar and Ajeevika Mission Gramin, which is likely to be introduced in Parliament during the ongoing winter session.
The government said that the proposed law will increase guaranteed rural employment from 100 days to 125 days a year. However, it also brings major changes to how the scheme will function, how it will be funded, and who will control it.
Under the existing MGNREGA law, rural workers had a legal right to demand work, and the Centre was responsible for paying wages. States only shared the cost of materials and administrative expenses. The new Bill shifts a large part of the financial burden to the States. For most States, the government will now have to bear 40 percent of the total cost, while only a few regions, such as the Northeast, Himalayan States and some Union Territories, will continue to get higher central support.
The Centre will also have much greater control over the scheme. Unlike MGNREGA, which allowed funds to increase based on how much work people demanded, the new law allows the Union government to fix state-wise allocations in advance. It will also decide which rural areas within a State will get the scheme.
Another controversial provision allows the programme to be stopped during peak agricultural seasons. States will be asked to notify up to 60 days a year, covering sowing and harvesting periods, when no work will be provided under the scheme. Critics say this could push labourers to work on private farms for lower wages.
The Bill also makes digital systems such as Aadhaar-based payments, app-based attendance, and geotagging of worksites compulsory by law. While the government says this will improve transparency, activists fear that technical failures could lead to workers being denied wages or work.
In its explanation, the government says rural India has changed significantly since 2005. It points to better roads, housing, electrification, financial inclusion and digital access. According to the government, rural workers now want better incomes, sustainable livelihoods and growth-oriented infrastructure, which require a new framework.
However, those involved in creating MGNREGA have strongly opposed the move. Nikhil Dey of the Mazdoor Kisan Shakti Sangathan said the new law weakens the idea of a right to work. “This is the end of the rights-based framework that workers have had for two decades. It takes us back to allocation-based schemes where people have very little say,” he said. He also warned that the increased financial burden on States is unrealistic.
There is also anger over the removal of Mahatma Gandhi’s name from the scheme. Earlier, it was speculated that the programme might still retain a reference to Gandhi, but the proposed Bill removes his name entirely.
CPI Marxist MP John Brittas described the Bill as a hidden attempt to shift costs to States. “MGNREGA was demand-driven. If a worker asked for work, the Centre had to pay. Now, when funds run out, rights will run out,” he said. He also criticised the growing centralisation of power, saying gram sabhas and panchayats are being sidelined in favour of central digital systems.
Brittas also objected to the provision allowing work to be stopped for 60 days a year. “This is not welfare. It is labour control. Workers are being told not to work, not to earn, and just wait,” he said.
Opposition parties are expected to strongly challenge the Bill in Parliament, arguing that it weakens rural workers’ rights, increases pressure on States, and dismantles one of the most important social security laws in the country.
